Contingent contracts are common in the real estate industry. Contingencies can arise that can derail sales from being fully executed. A backup offer ensures that you'll score a new contract with a seller if the first offer they've accepted falls through.
What is the difference between pending and active backup?
Are backup offers worth it?
“The primary buyer is much less likely to create problems for the seller in the first place, if they are made aware that backup offers exist.” And if the primary deal does fall through, having a backup offer eliminates the need to market the property all over again and host a new round of showings.
Is it normal for sellers to accept backup offers?
In some multiple listing services, homes are marked “contingent accepting backup offers.” For various reasons, some sales fall through. Depending on your residence state, a backup offer could become a legally binding contract. If the primary offer with the first buyer doesn't happen, your agreement takes effect.
Can a buyer cancel a backup offer?
Having a backup offer keeps you from having to go back on the market if the first contract falls apart due to inspections or financing. It's always a great idea to have someone waiting in the wings. However, take note of the info above. The 2nd offer can cancel at any moment in time.
How do you win a backup offer on a house?
- Money talks. Present a clean offer, complete with mortgage pre-approval and proof of funds.
- Be flexible. Are you willing to give them extra time to enjoy the holidays in their home, or forgo minor repairs that others might insist on?
- Write a letter.
- Stay visible.